IQ-AI, Ltd. provided clues to its present market activities through a report of financial results for the second half and full-year ending December 2022. The Company appears to have made progress on several fronts, moving closer to completing its first clinical trial for an important brain tumor treatment and preparing an application for approval of a highly proprietary medical device. Work is on schedule for the phase I clinical trial of oral gallium maltolate for treatment of glioblastoma brain tumors. Future returns on the compound could be enhanced, if it is approved, through designation as an ‘orphan drug’. Additionally, the U.S. FDA appears to have given a boost to the Company’s IB Zero solution for enhancing medical images by suggesting the Company submit a ‘de novo’ application for regulatory approval. IB Zero makes it possible to generate enhanced medical images without the use of a contrast agent, typically gadolinium. The solution represents a lower cost option for radiology departments and a significantly improved experience for patients.
Both products represent important new revenue streams for Imaging Biometrics, IQ-AI’s single portfolio investment. Even as the Company works toward regulatory approval and commercial stage for therapeutic compounds, there has been progress in building near-term sales growth. Management claims an increase in trials of its products and improved communications with its market partners. Both bode well for increased revenue.
We continue to rate IQAI and IQAIF at Speculative Buy with a 6.50 GBp price target for IQAI trading on the London Exchange. Our target price represents a doubling of the stock’s current valuation metric, price to sales. Our view is informed by a review of valuation multiples for a group of twenty-four companies in the medical imaging and artificial intelligence sector, which pegs price to sales at 19.0 times trailing sales. We note the stock has benefited from an increase in trading volume and a reduced bid-ask spread.
Click on the image below to read more details in our most recent report on IQ-AI, Ltd. dated May 30, 2023.
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